Paper Topic:

You have been called upon by a group of company directors to advise them on the future strategic direction of the company. In particular they aim to participate more actively in the global market.

ID

GLOBAL STRATEGIC DIRECTION

The business selected is Nokia which operates as mobile phone supplier and wants to expand its presence and the Middle East and other places globally

In to expand its presence globally , first of all the mode of entry should be taken into consideration . In to determine the optimum entry mode , the intensity of competition on the market should be evaluated . In the markets Nokia wants to enter , the intensity of completion as far as mobile phones is concerned is high but also , there is a lot

of growth in these markets as the telecom industry is at a boom which directly affects the business of mobile phone suppliers . Hence there are a number of options available for Nokia . It can franchise its outlets in the countries it wants to enter it can also go for a joint venture with an already existing firm with its own brand name Nokia as it already has good will or it can go for acquisition and acquire an existing brand with its production facilities or set up its own production facility or import products and set up a service office

When an organization wants to go global , customer focus is very important . Nokia , being a customer centric organization needs to make an in depth research and analysis as to what the consumer in the markets want and what are their tastes and preferences as far as mobile phones and the kind of products Nokia is offering is concerned . A company which provides customer driven service , quality and products and uses this as a strategic step can gain a competitive advantage (Langevin 1998

Now once the mode of entry is decided , another important strategic decision is about the production of the products . When going global Nokia has two options . Either it can keep its manufacturing plants in its home country and import finished products to the respective global outlets or it can shift its manufacturing plants to the areas of expansion . Since Nokia also wants to expand in the Middle East , the second option is more viable as the cost of labor in these areas is low which means that the in China low cost of production is the result of low labor cost , low cost of local purchasing and low cost of investment (China 's advantage in low labor cost will remain in coming decade , report , 2004 . On the other hand , the technological aspect should also be taken into consideration . If the countries are not well equiped with the kind of machinery the manufacturing requires , then the cost of importing that machinery might be higher than importing finished products . Hence , this decision varies on the situation at hand

Another strategic decision when going global will be the way the organization or the business is handled from the headquarters . What is important to implement is that the responsibility should not be confined to the main office but should be distributed to the mangers in charge in the particular region...

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